2021 Q2 Form 10-Q Financial Statement

#000113811821000033 Filed on July 30, 2021

View on sec.gov

Income Statement

Concept 2021 Q2 2021 Q1 2020 Q2
Revenue $6.459B $5.939B $5.381B
YoY Change 20.02% 0.84% -5.82%
Cost Of Revenue $5.017B $4.720B $4.400B
YoY Change 14.03% 0.15% -1.04%
Gross Profit $1.442B $1.219B $981.8M
YoY Change 46.85% 3.64% -22.58%
Gross Profit Margin 22.32% 20.53% 18.25%
Selling, General & Admin $957.2M $828.3M $740.6M
YoY Change 29.25% 4.83% -15.96%
% of Gross Profit 66.39% 67.93% 75.43%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $119.1M $122.1M $116.4M
YoY Change 2.29% 7.29% 9.3%
% of Gross Profit 8.26% 10.01% 11.86%
Operating Expenses $1.076B $950.5M $857.0M
YoY Change 25.59% 5.16% -2.32%
Operating Profit $366.5M $269.1M $94.17M
YoY Change 289.19% 22.15% -66.89%
Interest Expense $198.4M $73.50M $1.500M
YoY Change 13124.0% 1497.83% -153.57%
% of Operating Profit 54.13% 27.31% 1.59%
Other Income/Expense, Net $12.05M $2.732M $5.220M
YoY Change 130.75% -1515.54% 19.48%
Pretax Income $576.9M $345.3M $100.9M
YoY Change 471.66% 53.67% -64.71%
Income Tax $133.4M $76.33M $18.80M
% Of Pretax Income 23.13% 22.1% 18.63%
Net Earnings $442.6M $266.2M $81.90M
YoY Change 440.48% 54.59% -63.39%
Net Earnings / Revenue 6.85% 4.48% 1.52%
Basic Earnings Per Share $1.32 $0.79 $0.24
Diluted Earnings Per Share $1.30 $0.78 $0.24
COMMON SHARES
Basic Shares Outstanding 335.6M shares 335.9M shares 335.1M shares
Diluted Shares Outstanding 339.5M shares 339.6M shares 337.4M shares

Balance Sheet

Concept 2021 Q2 2021 Q1 2020 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.143B $1.910B $1.214B
YoY Change 76.51% 204.14% 126.49%
Cash & Equivalents $2.143B $1.910B $1.314B
Short-Term Investments
Other Short-Term Assets $321.3M $318.7M $684.0M
YoY Change -53.02% -53.27% 187.64%
Inventory
Prepaid Expenses $327.6M $281.7M
Receivables $4.426B $4.233B $4.424B
Other Receivables $1.232B $758.0M $868.0M
Total Short-Term Assets $8.887B $7.906B $7.189B
YoY Change 23.62% 8.84% 4.41%
LONG-TERM ASSETS
Property, Plant & Equipment $741.9M $774.3M $1.986B
YoY Change -62.64% -59.18% 166.05%
Goodwill $3.892B $3.805B
YoY Change 3.56%
Intangibles $1.345B $1.370B
YoY Change
Long-Term Investments $747.6M $682.6M $386.0M
YoY Change 93.68% 61.36% 25.61%
Other Assets $881.4M $748.6M $888.0M
YoY Change -0.74% 8.28% 17.96%
Total Long-Term Assets $9.571B $9.342B $8.511B
YoY Change 12.46% 11.0% 8.64%
TOTAL ASSETS
Total Short-Term Assets $8.887B $7.906B $7.189B
Total Long-Term Assets $9.571B $9.342B $8.511B
Total Assets $18.46B $17.25B $15.70B
YoY Change 17.57% 10.0% 6.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.485B $2.469B $2.329B
YoY Change 6.7% 4.4% 12.84%
Accrued Expenses $2.364B $2.218B $1.932B
YoY Change 22.36% 4.87% -1.68%
Deferred Revenue $197.4M $174.4M $128.4M
YoY Change 53.74% 62.99% 17.25%
Short-Term Debt $1.108B $681.0M $1.210B
YoY Change -8.45% -46.12% -23.42%
Long-Term Debt Due $1.181M $1.402M $1.540M
YoY Change -23.31% -18.39% -31.8%
Total Short-Term Liabilities $6.398B $5.773B $5.853B
YoY Change 9.31% -4.82% -0.59%
LONG-TERM LIABILITIES
Long-Term Debt $1.854B $1.848B $1.763B
YoY Change 5.17% 5.35% -0.2%
Other Long-Term Liabilities $710.9M $608.8M $1.664B
YoY Change -57.28% 31.87% 271.61%
Total Long-Term Liabilities $2.565B $2.457B $1.763B
YoY Change 45.49% 10.87% -20.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.398B $5.773B $5.853B
Total Long-Term Liabilities $2.565B $2.457B $1.763B
Total Liabilities $10.34B $9.593B $9.456B
YoY Change 9.3% 0.86% 1.37%
SHAREHOLDERS EQUITY
Retained Earnings $7.239B $6.796B
YoY Change 14.22%
Common Stock $1.005B $1.017B
YoY Change -1.31%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $7.680B $7.230B $6.244B
YoY Change
Total Liabilities & Shareholders Equity $18.46B $17.25B $15.70B
YoY Change 17.57% 10.0% 6.66%

Cashflow Statement

Concept 2021 Q2 2021 Q1 2020 Q2
OPERATING ACTIVITIES
Net Income $442.6M $266.2M $81.90M
YoY Change 440.48% 54.59% -63.39%
Depreciation, Depletion And Amortization $119.1M $122.1M $116.4M
YoY Change 2.29% 7.29% 9.3%
Cash From Operating Activities $420.5M -$193.4M $134.9M
YoY Change 211.73% 50.22% 35.85%
INVESTING ACTIVITIES
Capital Expenditures -$46.34M $29.60M -$71.90M
YoY Change -35.54% -52.45% 6.99%
Acquisitions
YoY Change
Other Investing Activities -$104.2M -$16.00K $28.20M
YoY Change -469.67% -99.82% -508.7%
Cash From Investing Activities -$150.6M -$193.9M -$43.70M
YoY Change 244.6% 110.24% -41.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $61.11M
YoY Change 22.15%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -22.98M $402.0M 478.4M
YoY Change -104.8% -496.37% -519.65%
NET CHANGE
Cash From Operating Activities 420.5M -$193.4M 134.9M
Cash From Investing Activities -150.6M -$193.9M -43.70M
Cash From Financing Activities -22.98M $402.0M 478.4M
Net Change In Cash 247.0M -$37.54M 569.6M
YoY Change -56.64% -89.6% -740.72%
FREE CASH FLOW
Cash From Operating Activities $420.5M -$193.4M $134.9M
Capital Expenditures -$46.34M $29.60M -$71.90M
Free Cash Flow $466.9M -$223.0M $206.8M
YoY Change 125.76% 16.77% 24.2%

Facts In Submission

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us-gaap Operating Income Loss
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us-gaap Income Loss From Equity Method Investments
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us-gaap Net Income Loss
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ProfitLoss
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us-gaap Profit Loss
ProfitLoss
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us-gaap Profit Loss
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2020Q2 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
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us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2021Q2 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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CY2020Q2 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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275000 USD
us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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3502000 USD
us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
1550000 USD
CY2021Q2 us-gaap Comprehensive Income Net Of Tax
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CY2020Q2 us-gaap Comprehensive Income Net Of Tax
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us-gaap Comprehensive Income Net Of Tax
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us-gaap Comprehensive Income Net Of Tax
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us-gaap Profit Loss
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us-gaap Depreciation And Amortization
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3317000 USD
us-gaap Amortization Of Financing Costs
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3082000 USD
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us-gaap Gain Loss On Sale Of Other Assets
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105697000 USD
us-gaap Asset Impairment Charges
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us-gaap Asset Impairment Charges
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us-gaap Gain Loss On Investments
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5027000 USD
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us-gaap Provision For Doubtful Accounts
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us-gaap Proceeds From Sale Of Mortgage Loans Held For Sale
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us-gaap Payments For Origination Of Mortgage Loans Held For Sale
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cbre Increase Decrease In Warehouse Lines Of Credit
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cbre Increase Decrease In Warehouse Lines Of Credit
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27894000 USD
cbre Increase Decrease In Real Estate Under Development
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Proceeds From Lines Of Credit
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cbre Proceeds From Notes Payable On Real Estate
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48548000 USD
cbre Proceeds From Notes Payable On Real Estate
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us-gaap Proceeds From Issuance Of Senior Long Term Debt
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
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527000 USD
us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
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3377000 USD
us-gaap Stockholders Equity Other
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us-gaap Profit Loss
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19704000 USD
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us-gaap Basis Of Accounting
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Basis of Presentation<div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Readers of this Quarterly Report on Form 10-Q (Quarterly Report) should refer to the audited financial statements and notes to consolidated financial statements of CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), for the year ended December 31, 2020, which are included in our </span><span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="http://www.sec.gov/Archives/edgar/data/1138118/000113811821000012/cbre-20201231.htm" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2020 Annual Report on Form 10-K (2020 Annual Report)</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">,</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> filed with the United States Securities and Exchange Commission (SEC) and also available on our website (www.cbre.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Significant Accounting Policies, in the notes to consolidated financial statements in our </span><span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="https://www.sec.gov/Archives/edgar/data/1138118/000113811821000012/cbre-20201231.htm" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2020 Annual Report</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> for further discussion of our significant accounting policies and estimates.</span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Considerations Related to the Covid-19 Pandemic</span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Covid-19 pandemic has primarily impacted the property sales and leasing lines of business in the Advisory Services segment. Many property owners and occupiers put transactions on hold and withdrew existing mandates, sharply reducing sales and leasing volumes. The effects of Covid-19 have eased in parts of the world where progress has been made with vaccine distribution and global economic conditions have improved. Nevertheless Covid-19 continues to pose public health challenges that impact our operations, particularly as new strains emerge and spread and vaccine administration is slow in parts of the world. As of the date of this Quarterly Report, the majority of workers remain out of their offices and occupier confidence in making long-term office leasing decisions has not returned to pre-pandemic levels. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">See Note 5 (Fair Value Measurements) and Note 10 (Commitments and Contingencies) for further discussion of Covid-19 considerations.</span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Financial Statement Preparation</span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or GAAP, for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, including the impact Covid-19 may have on our business. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported and reported amounts of revenue and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.</span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain reclassifications have been made to the 2020 financial statements to conform with the 2021 presentation.</span></div>
us-gaap Use Of Estimates
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The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, including the impact Covid-19 may have on our business. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported and reported amounts of revenue and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.
us-gaap Prior Period Reclassification Adjustment Description
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Certain reclassifications have been made to the 2020 financial statements to conform with the 2021 presentation.
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
209772000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
69985000 USD
CY2021Q2 cbre Carried Interest Incentive Compensation Expense Reversal
CarriedInterestIncentiveCompensationExpenseReversal
1672000 USD
CY2020Q2 cbre Carried Interest Incentive Compensation Expense Reversal
CarriedInterestIncentiveCompensationExpenseReversal
-7500000 USD
cbre Carried Interest Incentive Compensation Expense Reversal
CarriedInterestIncentiveCompensationExpenseReversal
17004000 USD
cbre Carried Interest Incentive Compensation Expense Reversal
CarriedInterestIncentiveCompensationExpenseReversal
-15284000 USD
CY2021Q2 cbre Impact Of Fair Value Adjustments To Assets Acquired In Business
ImpactOfFairValueAdjustmentsToAssetsAcquiredInBusiness
-374000 USD
CY2020Q2 cbre Impact Of Fair Value Adjustments To Assets Acquired In Business
ImpactOfFairValueAdjustmentsToAssetsAcquiredInBusiness
1247000 USD
cbre Impact Of Fair Value Adjustments To Assets Acquired In Business
ImpactOfFairValueAdjustmentsToAssetsAcquiredInBusiness
725000 USD
cbre Impact Of Fair Value Adjustments To Assets Acquired In Business
ImpactOfFairValueAdjustmentsToAssetsAcquiredInBusiness
7000000 USD
CY2021Q2 us-gaap Restructuring Costs
RestructuringCosts
0 USD
CY2020Q2 us-gaap Restructuring Costs
RestructuringCosts
693000 USD
us-gaap Restructuring Costs
RestructuringCosts
0 USD
us-gaap Restructuring Costs
RestructuringCosts
3934000 USD
CY2021Q2 us-gaap Business Combination Integration Related Costs
BusinessCombinationIntegrationRelatedCosts
8134000 USD
CY2020Q2 us-gaap Business Combination Integration Related Costs
BusinessCombinationIntegrationRelatedCosts
236000 USD
us-gaap Business Combination Integration Related Costs
BusinessCombinationIntegrationRelatedCosts
8134000 USD
us-gaap Business Combination Integration Related Costs
BusinessCombinationIntegrationRelatedCosts
1019000 USD
CY2021Q2 cbre Adjusted Earnings Before Interest Taxes Depreciation And Amortization
AdjustedEarningsBeforeInterestTaxesDepreciationAndAmortization
787912000 USD
CY2020Q2 cbre Adjusted Earnings Before Interest Taxes Depreciation And Amortization
AdjustedEarningsBeforeInterestTaxesDepreciationAndAmortization
354256000 USD
cbre Adjusted Earnings Before Interest Taxes Depreciation And Amortization
AdjustedEarningsBeforeInterestTaxesDepreciationAndAmortization
1332966000 USD
cbre Adjusted Earnings Before Interest Taxes Depreciation And Amortization
AdjustedEarningsBeforeInterestTaxesDepreciationAndAmortization
837208000 USD
CY2021Q2 us-gaap Revenues
Revenues
6458613000 USD
CY2020Q2 us-gaap Revenues
Revenues
5381384000 USD
us-gaap Revenues
Revenues
12397492000 USD
us-gaap Revenues
Revenues
11270552000 USD

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